"Cryptocurrency has proven a disappointing alternative to fiat currency, a poor alternative to conventional securities, and a lousy store of value. But it has helped plenty of people to launder money and avoid taxes."
48-nation bloc to crack down on using crypto assets to avoid tax
111–116 of 116 posts
Re: 48-nation bloc to crack down on using crypto assets to avoid tax
#112Earlier quoted context omitted.
This - to me prudently is something like prioritising: health care, infrastructure, social security, education, defence and policing. I know that many people (even just across the UK), would either disagree with this list, or with the various % that should be attributed to each. One persons 'prudent' would be another persons too much/little etc.
This is the current expenditure distribution: https://assets.publishing.service.gov.uk/government/uploads/... By far the largest categories are Social protection and Health, followed by Education, Debt interest and Defense. I guess you want to increase infrastructure spending. So the question is, what are you going to deprioritize? Source: https://www.gov.uk/government/publications/spring-budget-202...
Tax evasion
Re: 48-nation bloc to crack down on using crypto assets to avoid tax
#113Earlier quoted context omitted.
This - to me prudently is something like prioritising: health care, infrastructure, social security, education, defence and policing. I know that many people (even just across the UK), would either disagree with this list, or with the various % that should be attributed to each. One persons 'prudent' would be another persons too much/little etc.
That looks remarkably like the current UK spending allocation. But the detail matters.
Indeed, lots of people on both sides of the divide think that the current spending is wrong, and I would assume many from around the world wouldn't consider our priorities 'prudent'
Re: 48-nation bloc to crack down on using crypto assets to avoid tax
#114FX is the largest market in the world. It's about 30x global GDP. If BTC can take 1% of the FX market its value would be $1.5M, each. As the price of btc rises it becomes less volatile, which makes it more attractive for large transactions. Btc transactions settle without active third party involvement or approval. Btc, in particular, should be very attractive for International settlements in the future. That's why t…
Isn't this what XRP was intended for?
Yeah, it's the big banks competitor. For parties who are wary of dealing with the Western big banking cartel, i.e. BRICS, they're not going to like XRP.
Re: 48-nation bloc to crack down on using crypto assets to avoid tax
#115Earlier quoted context omitted.
People confuse a lot of things about volatility, risk, and long term valuation. Bitcoin is an inherently good long term store of value, because it has deterministic and finite inflation schedule, which is also plausibly immutable (contrary to fiat cryptocurrencies, called "cryptos"). On the other hand, fiat currencies are a lousy store of value, because they have non-deterministic, but always positive inflation sched…
> Bitcoin is an inherently good long term store of value That really depends on the taxation rules in your jurisdiction.
What jurisdictions have favorable tax rules here? Just ones which don't tax income at all? Because afaik every jurisdiction which taxes income does it based on the value in some fiat currency. So suppose you buy $100 worth of bitcoin today and tomorrow the dollar experiences 100% inflation then if you sold your bitcoin for $200 you would end up with the same amount of value except you would owe taxes on $100 of "income".
It still makes bitcoin better than holding dollars (taxes are almost always less than 100% of gains). This seems to be an inherent problem with all "stores of value" and is usually why people choose to invest rather than "store".
Re: 48-nation bloc to crack down on using crypto assets to avoid tax
#116Earlier quoted context omitted.
In Poland there is no checkbox on a tax forms to say "you've dealt with crypto", but every transaction over 10K EUR is reported to the gov, and when I was a UK tax resident with a Polish bank account my Polish bank asked for my UK tax info to send the details of any such transactions to HMRC in the UK. I suspect it's an EU wide thing. I'm not sure why these 48 countries single out crypto assets like this. You can eva…
> In Poland there is no checkbox on a tax forms Yes, there is, in 2022 it was in PIT 38, sec. E. You need to report purchases even when you have not sold anything as this entitles you to subtract cost when you sell later.
False, in Poland you report income on crypto when you sell and you realise gains. The parent is saying in the US you have to tick a box on a tax form just because you bought some crypto.
PIT38 is about reporting income from capital gains, it has nothing crypto specific. Certainly there is no section where you're reporting crypto purchases regardless if you made any income or not.
Section E specifically is a summary section where you put totals of tax to pay. There is nothing about crypto in it.
Also you only get PIT 38 made up for you if you've made income from(reported directly by the broker): - stocks - short selling - derrivatives - dividend
If you didn't and you're not reporting any income from financial instruments you do not report any crypto purchases your pit38 will have all zeroes.
Perhaps you confused it with the fact you have to report any shares in ownership of any limited companies, cooperative or other "for profits" you procured without paying for them except when they were exchanged for other shares. This means you have to report shares if your were given them as payment etc. In general it has nothing to do with crypto, but lets say there is an ICO that gives you voting/share of ownership rights like we had with the DAO. And you're a developer, you do some work for the DAO and you're paid with tokens, but you don't sell them. You still have to report this, but that is a very specific situation.